In fact, some of the individual periods have provided strong returns, especially when they marked the
beginning of secular bull markets, like in 1942 and the early 1980's.
The following chart (from Too Little to Lock In) provides a view of the sort of valuations we typically see at the beginning
of secular bull market advances, versus where we are at present.
3) The stock market experiences extended
periods of secular bull markets and secular bear markets based on the trend in P / E ratios, which is driven by the trend in inflation.